Time Running Out for Student Loan Forgiveness
With less than two months left in office, President Joe Biden is facing mounting pressure to forgive more student loan debt. A group of Democratic lawmakers, including Sen. Bernie Sanders and Ed Markey, have written a letter to Education Secretary Miguel Cardona, urging him to take action on behalf of borrowers who were defrauded by their colleges.
A Growing Problem
According to estimates, there are approximately 400,000 borrowers who have applied for relief after being misled by their schools or seeing their colleges close. Despite the Education Department’s efforts to forgive over $28 billion in student debt for more than 1.6 million borrowers, many are still waiting for relief.
The Clock is Ticking
Lawmakers are concerned that if the Education Department doesn’t act soon, it may be too late. President-elect Donald Trump and Vice President-elect JD Vance have expressed their opposition to student loan forgiveness, and borrowers may face an uphill battle in getting their debts discharged.
A History of Predatory Practices
The issue of student loan forgiveness is particularly relevant given the history of predatory practices in the for-profit college industry. Trump himself once ran a for-profit school, Trump University, which was shut down after attendees alleged they were duped with false advertising and high-pressure sales tactics.
The Last 50 Days
Meanwhile, The Debt Collective, a union for debtors, has launched its “Last 50 Days” campaign to put pressure on the Biden administration to forgive the debt of student loan borrowers over the age of 50. With around 9 million Americans over the age of 50 holding student loans, with an average balance of over $45,000, the stakes are high.
A Legacy of Debt Relief
While Biden has forgiven more student debt than any other president, his efforts to deliver wide-scale debt cancellation have been stymied by Republican-led legal challenges. As his time in office comes to a close, it remains to be seen whether he will be able to deliver on his promise to provide relief to student loan borrowers.
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